A collaborative article by the Asia Business Council and McKinsey delved into the perspectives of business leaders in Asia as they navigate an emerging and potentially more turbulent era, in terms of world order, technology, demographics, resource and energy systems, and financial capitalization. Overall, they believe the region can sustain its growth but will need strategic adjustments to address disruptions and volatility in a multipolar world.
Washington should double down on combining policy support, financial incentives and advances in technology, to reduce its reliance on China-sourced material. As it strives to build a home-grown supply chain, investing in Canada’s critical minerals could be a game-changer.
The Asia Business Council conducted its annual survey of members in July 2023. Nearly half of the respondents show a growing optimism about business conditions in the upcoming year, anticipating Asian economies will continue to recover from the Covid-19 pandemic. However, economic challenges are at the forefront of their minds, with concerns about inflation, followed …
For all the talk of the benefits reshoring and ‘de-risking’ can bring domestic workers, they also introduce new risks to people’s way of life. Neither the US nor China can afford to ignore these new risks, including limited job creation, expensive subsidies and greater material costs.
The US is turning to Vietnam in its attempts to diversify supply chains and curb China’s regional influence, but that is easier said than done. Vietnam’s booming durian exports are just one example of its close economic dependence on China, complicating US ‘friendshoring’ efforts.
Hong Kong, Singapore, South Korea and Taiwan have managed to hold their own against developed economies in other regions for decades. However, amid geopolitical fragmentation, game-changing technological advancements and social divisions, they need to adapt quickly.
From electricity to public transport and logistics, more inter-regional cooperation and investment is needed, as well as innovation. Hong Kong can both serve as a conduit for mainland Chinese investment into Southeast Asia and provide sustainability finance expertise.
Hong Kong has long been a service-based economy reliant on finance, tourism, trade logistics and professional services. But as the Chinese economy shifts towards domestic consumption, Hong Kong must change too, to maintain healthy economic and job growth.
At the COP27 meeting in Sharm El-Sheikh, climate negotiators laid out a plan to implement the global goal of limiting warming to 1.5 degrees Celsius. The private sector must play a role in meeting climate targets and can build on that momentum. With this statement, Asian business leaders have committed to taking climate action and to safeguarding and managing nature sustainably.
The Council also conducted a survey (see box on the left below) to understand what drives corporate climate action in Asia, and what policies could accelerate decarbonization. See below for more on the key policy drivers we identified, and why we believe climate change should be a core part of the region’s economic growth strategy.
As Asian economies face recession worries, many are putting climate action on the back burner – but climate resilience goes hand in hand with economic stability. Setting ambitious energy and sustainability targets supports green growth.